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Acquiring net assets that constitute a business Assume on January 1 , 2 0 2 2 an investor company paid $ 1 , 4 8
Acquiring net assets that constitute a business
Assume on January an investor company paid $ to an investee company in exchange for the following assets and liabilities transferred from the investee company:
Asset Liability Estimated Fair Value
Production equipment $
Factory
Licenses
In addition, the investor provided to the seller contingent consideration with a fair value of $ and the investor paid an additional $ of transaction costs to an unaffiliated third party. The contingent consideration is not a derivative financial instrument. The fair values are measured in accordance with FASB ASC : Fair Value Measurement.
Assume the net assets transferred from the investee qualify as a business as that term is defined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January
Select one:
a
$
b
$
c
$
d
$
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